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Foundation Medicine Requests Withdrawal of $150M Planned Public Offering

NEW YORK (GenomeWeb News) – Foundation Medicine disclosed after the close of the market on Tuesday that it has filed a request with the US Securities and Exchange Commission to withdraw a proposed public offering of up to $150 million of its common stock.

The Cambridge, Mass.-based cancer genetics diagnostics company said it wants to withdraw its planned public offering "due to market conditions." Since Foundation Medicine filed its Form S-1 for the public offering with the SEC on March 20, its share price has slid 35 percent.

The company's shares closed down 2 percent on Tuesday on the Nasdaq at $24.97.

It has sold no securities pursuant to the filing of its preliminary prospectus, and "upon consideration of its financing and strategic options," may propose another public offering in the future, the company said in its SEC document on Tuesday.

Foundation Medicine raised $110.6 million in its initial public offering in September 2013. In its SEC document filed last month, it said that the $150 million planned public offering would "increase our financial flexibility." It intended to use proceeds to accelerate its commercial operations and R&D, to expand its technology infrastructure and technology platform, and to fund ongoing and new clinical trials.

Goldman Sachs and JP Morgan were the underwriters on the offering.